Massachusetts’ increased investment in the life sciences industry includes boosting its life sciences tax incentive program by $10 million annually, aiding job creation in the state.
With the Mass Leads Act signed into law by Gov. Maura Healey Nov. 20, Massachusetts can further develop its life sciences sector, thanks to a $500 million capital reauthorization of its life sciences initiative over 10 years. As part of that increased investment in the industry, the state will bump up its annual life sciences tax incentive program from $30 million to $40 million.
The program plays a key role in incentivizing job creation in Massachusetts. In October, the state announced $21.4 million in tax incentives for 19 companies. Those incentive awards are expected to create 1,155 new life sciences jobs in Massachusetts at businesses including Moderna, Vertex Pharmaceuticals and Insulet Corporation.
Boosting the industry’s workforce is a high priority for Massachusetts, whose life sciences jobs grew by just 2.5% in 2023 compared to a 7.8% annual average increase from 2020 to 2022, according to a MassBioEd employment outlook report released in June. That report also noted jobs are expected to go up 32% by 2033.
Massachusetts’ increased investment in life sciences will also allow the state to expand the Massachusetts Life Sciences Center’s mission to include programs that support preventative medicine and health-related AI. The economic development investment agency has already made a significant impact on the life sciences industry. Since 2007, it’s deployed about $1 billion in Massachusetts, creating thousands of jobs and furthering the development of new therapies, devices and scientific advancements.
The Mass Leads Act is intended to benefit not only the state’s life sciences sector but also emerging industries like climatetech and applied artificial intelligence.
In the signing’s announcement, multiple industry members expressed support for the law, including Julie Kim, president of the U.S. business unit and U.S. country head at Takeda.
“As the largest life sciences employer in Massachusetts, we are especially grateful for the reauthorization of the Life Sciences Initiative with an expanded focus on initiatives to promote health equity and encourage the responsible use of artificial intelligence to address long-standing health disparities and drive breakthrough discoveries,” she said.
Kendalle Burlin O’Connell, CEO and president of MassBIO, also made a statement of support, noting, “The continued investment in infrastructure across the state and increases to the proven-effective Life Sciences Tax Incentive Program ensure that Team Massachusetts will have the tools to support innovation and the creation of lifesaving medicines and therapies for patients around the world - while lengthening our lead economically here at home.”
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